US Gov’t Seeks to Add $14B to Crypto Reserves as Part of Forfeiture Case

A US federal court has unsealed a criminal indictment involving a massive cryptocurrency fraud scheme that could result in the government increasing its national Bitcoin reserves by $14 billion.

In a Tuesday notice from the US Justice Department, authorities said they had filed a forfeiture complaint against 127,271 Bitcoin (BTC), worth about $14.4 billion at the time of publication. The Bitcoin was tied to an indictment against Chen Zhi, founder and chair of a Cambodia-based company that was allegedly responsible for orchestrating crypto investment schemes.

The US Department of the Treasury’s Office of Foreign Assets Control sanctioned Zhi’s company, the Prince Holding Group, and its affiliates on the same day the indictment was unsealed.

According to the complaint, the US will seek forfeiture upon Zhi’s conviction in the US District Court for the Eastern District of New York, where he faces charges of wire fraud conspiracy and money laundering conspiracy.

If approved by the court following Zhi’s potential conviction, the Bitcoin forfeiture would represent one of the most significant additions of cryptocurrency to the US strategic reserve since its establishment. US President Donald Trump set up national Bitcoin and crypto reserves via executive order in March.

This is a developing story, and further information will be added as it becomes available.